Correlation Between Suzhou Industrial and Zhejiang Kingland
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By analyzing existing cross correlation between Suzhou Industrial Park and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Suzhou Industrial and Zhejiang Kingland and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Suzhou Industrial with a short position of Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Industrial and Zhejiang Kingland.
Diversification Opportunities for Suzhou Industrial and Zhejiang Kingland
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzhou and Zhejiang is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Industrial Park and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland and Suzhou Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Suzhou Industrial Park are associated (or correlated) with Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Suzhou Industrial i.e., Suzhou Industrial and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Suzhou Industrial and Zhejiang Kingland
Assuming the 90 days trading horizon Suzhou Industrial Park is expected to generate 4.84 times more return on investment than Zhejiang Kingland. However, Suzhou Industrial is 4.84 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.5 per unit of risk. If you would invest 992.00 in Suzhou Industrial Park on October 13, 2024 and sell it today you would lose (36.00) from holding Suzhou Industrial Park or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Industrial Park vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Suzhou Industrial Park |
| Zhejiang Kingland |
Suzhou Industrial and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Industrial and Zhejiang Kingland
The main advantage of trading using opposite Suzhou Industrial and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Industrial position performs unexpectedly, Zhejiang Kingland can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Suzhou Industrial vs. Dr Peng Telecom | Suzhou Industrial vs. Mengtian Home Group | Suzhou Industrial vs. Markor International Home | Suzhou Industrial vs. Bank of Communications |
| Zhejiang Kingland vs. Suzhou Industrial Park | Zhejiang Kingland vs. Miracll Chemicals Co | Zhejiang Kingland vs. Xinxiang Chemical Fiber | Zhejiang Kingland vs. China Minmetals Rare |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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